YORK UNIVERSITY - AS/ECON2350 V.BARDIS PRACTICE SET 4 1. Suppose two advertising companies have two options: Send out e-mail ads (S) or Dont send out e-mail ads (D) If only one chooses to e-mail ads to consumers, then it will make a profit of 10 and the o
ECON2350 V.BARDIS PRACTICE SET 7 1. Tom and Jerry find themselves stranded on an island. Each person is interested in consuming the same two goods, X and Y. Tom has 3 units of good X, and 1 unit of good Y. Jerry has 2 unit of good X and 5 units of good Y.
York University - AS/ECON2350 - V. Bardis Answers to Practice Set 3 1. (a) and (b) See notes or text on how to do these. Here pm = 30 and Qm = 40. (b) The increase in an input price will raise the rms cost. If we write the cost function as C (Q) = cQ then
YORK UNIVERSITY - AS/ECON2350 V.BARDIS PRACTICE SET 4 1. Player 2 S (1,1) (0,10)
Player 1
S D
D (10,0) (0,0)
The game has a dominant strategy equilibrium which is also the N.E. of the game. Each player chooses S regardless of what the other does since 1>0